The Balance in a Company's Accounts Payable at December 31

question 110

Multiple Choice

The balance in a company's accounts payable at December 31, 2012 was $900,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to the company on December 31, 2012. The invoice cost was $50,000, and the goods were shipped f.o.b. shipping point on December 29, 2012. The goods were received on January 4, 2013.
Goods shipped f.o.b. shipping point on December 20, 2012 from a vendor to the company were lost in transit. The invoice cost was $25,000. On January 5, 2013, the company filed a $25,000 claim against the common carrier.
Goods shipped f.o.b. destination on December 21, 2012 from a vendor to the company were received on January 6, 2013. The invoice cost was $15,000.
What amount should the company report as accounts payable on its December 31, 2012 balance sheet?

• A) $925,000
• B) $940,000
• C) $950,000
• D) $975,000

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Definitions:

Dominant Message

The primary or most prominent message communicated to an audience, typically intended to influence or inform.

Phatic Function

One of Jakobson’s semiotic functions. Keeps participants in communication “on track” by establishing how communication will take place.

Semioticians Study

The examination of signs and symbols as significant elements of communication and the ways they are interpreted within cultural and social contexts.

Interpretation and Meaning

The process of explaining or providing the significance of something, such as data or events, often involving personal judgment or contextual analysis.